Sunday, November 2, 2008

Local TV woman sues station over contract termination fee

I thought this was a good article because we were just talking about contracts & that you need really read over them. I thought it was interesting that she was unhappy with her performance on air & was thinking about leaving & the general manager told her that she if she left she would have to pay a $10,000 termination fee. I thought it was important to note that the previous general manager told her that she would not have to pay a termination fee. She is now suing the station. This aritcle should be a wake up call for us...that we need to really examine contracts before we sign them & look for things like a termination fee. I can't believe stations really do that.

Local TV woman sues station over contract termination fee
10/23/2008 12:00 PM
By Kelly Holleran

A former KBTV NBC 4 morning show personality has filed suit against the station, claiming it is requiring her to pay $10,000 to resign.Rocio Garza claims she became unhappy with the progress she was making at her job as an on-air performer in early 2008, but was told by the station's new general manager, Chris Pruitt, that she would be required to pay $10,000 if she decided to leave.Pruitt replaced Van Greer, who had previously told Garza she would not be required to pay the money if she decided to leave, according to the complaint filed Oct. 21 in Jefferson County District Court. The suit names Nexstar Broadcasting Inc., doing business as KBTV NBC 4, as defendant. The written employment contract Garza signed requires her to pay the $10,000 in liquidated damages if she leaves before her employment term has ended, the suit states.After Pruitt informed Garza she would have to pay the money, Garza decided to stay, the suit states.In October, Garza claims she was demoted to weekend weather and was no longer allowed to appear on the morning show in apparent retaliation for her displeasure.Garza decided to resign, but was again told she would have to pay the $10,000, according to the complaint.She argues the liquidated damages are unenforceable because the Beaumont Court of Appeals has upheld a similar ruling.In addition, the contract is illusory because the station only promised to keep Garza until June 14, the suit states. Because the station does not promise Garza a job, yet she is required to promise her services until 2010, the contract is unenforceable, the suit states.Garza also claims that when the company demoted her, it breached the contract.Garza seeks a declaratory judgment that rules the contract and its liquidated damages provision are unenforceable.In addition, she seeks actual damages, attorney's fees, prejudgment and post-judgment interest, costs and other relief the court determines appropriate.Wyatt D. Snider and Jason M. Byrd of Snider and Byrd in Beaumont will be representing her.The case has been assigned to District Judge Milton Shuffield. Case No. D182-571

1 comment:

Mike said...

I realize the consequences that come with contracts in this industry, but I still think it's bad PR for KBTV to not just let Garza leave without penalties. The more news that comes out about this, I think becomes bad news, if they would've just let her go and be done with it, I think it would just be forgotten regarding to viewership reasons. She was demoted to the weekends after only being employed there for a year, so if she was so bad, why not welcome her desire to leave? I agree with you Tierney, this goes to show how ruthless contracts can be if one isn't aware of the details and abides to it and/or if they can't be tailored more to the interests of the employee. The consequences can be costly and lasting.